Creative Investment Research Files Comment on FedNow Payment System

The Federal Reserve has determined that the Federal Reserve Banks should develop a new real-time settlement service (FedNow) . Creative Investment Research filed comments on the social impact of the proposed service.
 
 
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* Federal Reserve Board

Industry:
* Government

Location:
* Washington - District of Columbia - US

Subject:
* Reports

WASHINGTON - Sept. 29, 2019 - PRLog -- On August 5, 2019, "The Board of Governors of the Federal Reserve System (Board) has determined that the Federal Reserve Banks (Reserve Banks) should develop a new interbank 24x7x365 real-time gross settlement service (FedNow) with integrated clearing functionality to support faster payments in the United States. The Board is requesting comment on modifications to the FedNow Service or other actions that would further reduce or eliminate potentially adverse effects without significantly compromising the anticipated public benefit associated with the service."

Our response comment concerns the social impact of the proposed FedNow Service.

The Federal Reserve Board announced that the Federal Reserve Banks will develop a new round-the-clock real-time payment and settlement service, called the FedNow℠ Service, to support faster payments in the United States.

The Fed's action is a direct response to the threat to the institution posed by digital currencies and blockchain. We believe this effort requires a proof-of-authority quantum computing based  blockchain system. (For more on blockchain, see: What is Bitcoin? How does it relate to blockchain? Henry Zhang, Creative Investment Research Impact Investing Intern. University of Toronto.  Online at: https://creativeinvest.com/crypto/bitcoinfaq.html )

On Oct. 5, 2006, foreshadowing and predicting the rise of cryptocurrencies, we wrote a comment letter to the US Securities and Exchange Commission that stated: "competitive advantage with respect to capital access is available to any country with significant economic potential and a modest telecommunications infrastructure." https://www.sec.gov/comments/4-526/4526-1.pdf

As we noted in our recent paper "Blockchain, Cryptocurrency and the Future of Monetary Policy,"  confidential, not-for-distribution research sent to select members of the House Financial Services Committee, it is critical to understand that bitcoin was created in direct response to the failure of global regulators to protect the public in the years leading up to the financial crisis of 2007/2008. Thus, the ethical and monetary functionality of cryptocurrency is superior to that of paper money. Eventually, cryptocurrency is going to dominate.

And, as we noted in a second paper " Is FedCoin Feasible?" another confidential, not-for-distribution research paper sent to select members of the House, we suggest the Board focus on using an enhanced Bitcoin blockchain to "support depository institutions' provision of end-to-end faster payment services and would provide infrastructure to promote ubiquitous, safe, and efficient faster payments in the United States."

For a copy of our comments and research, email info@creativeinvest.com

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Creative Investment Research
William Michael Cunningham
***@creativeinvest.com
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Tags:Federal Reserve Board
Industry:Government
Location:Washington - District of Columbia - United States
Subject:Reports
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Page Updated Last on: Nov 02, 2019
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